XML 25 R15.htm IDEA: XBRL DOCUMENT v3.25.1
Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table presents income tax provision for income taxes (in thousands, except for effective tax rate):
Three Months Ended
March 31,
20252024
Income tax provision(4,648)(113)
Effective tax rate 2.41 %0.20 %
For the three months ended March 31, 2025, the Company recorded an income tax provision of $4.6 million which included a discrete tax expense of $5.3 million related to the Antitrust Settlement and stock-based compensation expense. The Antitrust Settlement was treated as an infrequent and unusual item and the tax impact reported discretely during the three months ended March 31, 2025. The effective tax rate was 2.41% on pre-tax income of $193.1 million. The effective tax rate differs from the U.S. Statutory rate of 21% as a result of discrete item related to the Antitrust Settlement and changes in the Company's valuation allowance.
For the three months ended March 31, 2024, the Company recorded an income tax provision of $0.1 million. The effective tax rate was 0.20% on pre-tax loss of $56.2 million. The effective tax rate differs from the U.S. Statutory rate of 21% as a result of changes in the Company's valuation allowance
The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, loss carrybacks and tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative losses in recent years which is a significant piece of negative evidence to overcome. During the three months ended March 31, 2025, there have been no changes in the Company’s valuation allowance assessment from December 31, 2024. The Company maintains a full valuation allowance on all its U.S., French, and Spanish deferred tax assets as the Company concluded that such deferred tax assets are not realizable on a more-likely-than-not basis.